Long term trend: Up
Medium term trend: Down
Significant levels: 0.84 (Horizontal Resistance), 0.811 (Horizontal Support), and 0.80 (Significant round number)
Long and Medium term trend are not the same. This is the perfect scenario we want to find to trade. Why is that? It's because it gives us more opportunity. As in this case, the long term trend is up, but the market is currently down. This gives us an opportunity to place our Long trade at a lower price.
The Fibonacci Retracement was drawn from the low of mid June (2013) to the previous high that was made. The mid of June 2013 is when the market started making a higher low, which supports its uptrend. That's why it is drawn like this. Currently, the price is near/at the 0.382 level of the Fibonacci Retracement. Also, the current price is at/near the Horizontal Support line (0.811). Another thing is that, the line CD that is forming is now almost the same as the line AB, which will be completed at/near the support line.
This signals that the market will probably reverse at this point and will be back to its long term trend which is up. Though there are many confirmations that this is a confluence area, anything can happen. That's why it is important for us to see how the market will react at this point in time.
This would be a very good opportunity to trade and you don't want to miss this.
Trade well.
Medium term trend: Down
Significant levels: 0.84 (Horizontal Resistance), 0.811 (Horizontal Support), and 0.80 (Significant round number)
Long and Medium term trend are not the same. This is the perfect scenario we want to find to trade. Why is that? It's because it gives us more opportunity. As in this case, the long term trend is up, but the market is currently down. This gives us an opportunity to place our Long trade at a lower price.
The Fibonacci Retracement was drawn from the low of mid June (2013) to the previous high that was made. The mid of June 2013 is when the market started making a higher low, which supports its uptrend. That's why it is drawn like this. Currently, the price is near/at the 0.382 level of the Fibonacci Retracement. Also, the current price is at/near the Horizontal Support line (0.811). Another thing is that, the line CD that is forming is now almost the same as the line AB, which will be completed at/near the support line.
This signals that the market will probably reverse at this point and will be back to its long term trend which is up. Though there are many confirmations that this is a confluence area, anything can happen. That's why it is important for us to see how the market will react at this point in time.
This would be a very good opportunity to trade and you don't want to miss this.
Trade well.